Toncoin, the native coin of The Open Network and originally developed by the Telegram messaging app, saw a surge of future traders hedging their bets on the asset’s price following the arrest of Telegram CEO Pavel Durov.
On Aug. 24, Durov was arrested when his plane landed at the Bourget airport outside Paris. He allegedly faces charges of terrorism, trafficking, conspiracy, fraud, money laundering and more.
Just hours after the reports emerged, Toncoin (TON) open interest (OI) surged 32% to $303.09 million, according to CoinGlass data. The flock of traders appeared following TON’s price plummeting following the news.
At the time of publication, TON is trading at $5.71, down 14.71% since Aug. 24, according to CoinMarketCap.
Future traders appear to be slightly more skewed toward short positions. Source: CoinGlass
OI is the total number of derivative contracts that have not been settled, such as options or futures.
An increase in OI indicates greater confidence among traders in predicting TON’s price direction, whether up or down.
Pseudonymous crypto trader Daan Crypto Trades predicted in an Aug. 24 X post that most of them are traders expecting further downfall.
“Most of these are undoubtedly shorts/hedges,” he added.
It’s typical for traders to take such positions when fear and uncertainty enter the market, especially concerning a cryptocurrency token’s founder, executives or the broader company.
Traders predict Durov will be released soon
He further claimed that based on the grounds of Durov’s arrest, he personally thinks “he’ll be set free pretty quick.”
Yet he warned his 380,300 X followers against taking the same short positions, reiterating to “always be careful catching a falling knife.
Related: Toncoin’s BARR breakout sets stage for 40% TON price rally
“If he were to be released, that announcement should give a good squeeze. Might see a few days of volatile & choppy price action until the though,” Daan Crypto Trades added.
Echoing a similar sentiment, crypto trader Anup Dhungana claimed that “from a fundamental perspective, if Durov is released after facing interrogation and potential international objections, a quicker-than-expected price rebound could occur.”
Magazine: 11 critical moments in Ethereum’s history that made it the No.2 blockchain